Business
8 Clever Ways to Bring More Funds Into Your Startup
If there’s one thing every new startup needs its cash. It doesn’t matter how much you ploughed into the business to start with; it’ll soon all disappear. It’s unlikely most new companies will turn a profit in the first year, so where does all the money come from? To help your new company grow, here are eight clever ways to bring more funds in.
- Grants
There are plenty of charities and governmental bodies that give out grants to startups. You are more likely to get a new business grant if you work in a particular niche or are environmentally friendly. However, there are hundreds of schemes out there so have a look around.
- Angel Investors
If you have a strong business plan, then angel investing may be the way to go. Investors will ask for a stake in the business, in return for their investment. There are dozens of ways you can go about meeting angel investors, from networking to online. Check out Alternative Investment HQ for more information on angel investing.
- Crowdfunding
This form of raising funds has become extremely popular over the last few years. If you’re hoping to build up some cash for a new idea, then consider crowdfunding it. There have been some huge successes on websites such as Kickstarter. You just need to be able to provide ‘pledgers’ with some incentive or reward at the end of it.
- Investing
It may seem a bit backwards, but if you have a little bit of cash then try doubling your money. Look for low-risk investment opportunities that can help boost the funds you already have. Of course, investments can be seen as risky so bear this in mind.
- Bartering
Have you ever considered exchanging goods or services you provide, for something you need? Trading services is an excellent way to bypass the whole funding issue altogether. Let’s say you need an SEO expert and you build websites. Offer SEO experts a redesign of their website, in exchange for their services.
- Loans
If you’re really struggling to find the cash then look for small business loans that could help out. There are some incentives for new businesses, depending on which bank you go with. Some offer 0% interest for a certain amount of time if you’re a startup. This should only be used for a quick injection of cash, however.
- Friends and Family
You might not like the idea of asking friends and family members, but most business owners have done it. Even the very best! You could set up a crowdfunding page and ask them to donate to that. Alternatively, buddy up with someone and take equal shares in the business.
- Saving
Finally, this may be one of the most long-winded but it is one that definitely works. If you want to start a new business then perhaps the best way is to save. Take on an extra job, do some freelance work, and stop spending. You’ll be surprised at how quickly you can raise the funds when you really need to.
Of course, there are plenty of other ways you can bring more funds into your startup. All you need is an excellent business plan and a bit of hard graft. The money will come, eventually.
